Value proposition Formal Definition: A value proposition (VP) is a statement that clearly identifies what benefits a customer will receive by purchasing a particular product or service from a particular vendor. Alternative Definitions: A value proposition is a promise of value to be delivered, communicated, and acknowledged. It is a belief from the customer about how value (benefit) will be delivered, experienced and acquired. A value proposition is a statement which identifies clear, measurable and demonstrable benefits consumers get when buying a particular product or service. It is a principle of customer value, with customer insights driving the company’s marketing activities.
According to this theory by Oliver, satisfaction level is a result of the difference between expected and perceived performance. Positive disconfirmation or satisfaction occurs when a product or service is better than what is expected. Similarly, negative disconfirmation or dissatisfaction occurs when expectation is not met. Several studies reflect that customer satisfaction may have direct impact on business results and profitability. Many studies have analyzed the relationship between customer behaviour patterns and according to these findings, customer satisfaction influences repurchase decisions, increases loyalty and leads to positive word of mouth.
This point of view is deem reasonable when Kano (2001, cited in Högström, et al., 2010) claimed that an effective service attribute are dynamic and may changing over category. When the importance of service quality appears to be varied across different customer markets, the impact of experience towards the creation of value and satisfaction is different for high level and low level service quality, which subsequently, suggests that service quality may be good to be proposed as a moderator that alters the influence of experience on value and satisfaction. As a consequence, we could say that experience influences value and satisfaction level later. When service quality interacts with experience, it is expected to alter the strength of association between experience and value, which in turn influences satisfaction level. The effect of service quality on this relationship is expected to be significant because service quality has been proven to affect value positively (Andreassen & Lindestad, 1998; Cronin et al., 2000; Lai et al., 2009).
Market orientation does not lead to high satisfaction of customers. However, market orientation does improve company performance. Market orientation treats customers as their assets and reason for the company to exist. It helps to identify customers’ need and produce the products that customers wish for. So, customers are willing to buy the products or services and indirectly increase the company sales and performances.
In our research we are going to test our hypothesis: Does the perceived service quality and perceived value both have to be strong for customer satisfaction? The conceptual model for the relation between customer satisfaction and perceived value and service quality is: The study framework includes independent and dependent variables. Independent variable represents perceived service quality and perceived value. Specifically, dimensions of perceived service quality and perceived value that will be extracted with exploratory factor analysis. On the other hand, overall customer satisfaction represents dependent variable.
To avoid difficulties stemming from the kaleidoscope of customer expectations and differences, some experts urge companies to “concentrate on a goal that’s more closely linked to customer equity.” Instead of asking whether customers are satisfied, they encourage companies to determine how customers hold them accountable Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within
Therefore, having CRM in SMEs is to enhance a good customer services. CRM is a tool to implement a marketing strategy to focus on the customer. According to Parvatiyar and Sheth (2001), CRM defined as a strategy and process of acquiring and retaining customer which can create superior value for the company. By create a good customer service, customer relationship management play an important role to maintain the relationship with the customers. In term of CRM, not all customers are the same.
CHAPTER 1 1.1 INTRODUCTION Satisfying customers is one of the main objectives of every business. The message is obvious – satisfied customers improve business and dissatisfied customers impair business. Customer satisfaction is an asset that should be monitored and managed just like any physical asset. Introduction to Customer satisfaction: Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation.
The definition of customer satisfaction is “a customer is satisfied whenever his or her needs, real or perceived, are met or exceeded.” (Gerson, Richard F. 1993) Also, customer satisfaction is to measures how the product and service supplied by a company to meet the customer’s expectation. Customer satisfaction can be experienced in a variety of situations and connected to both goods and services. Satisfaction also is based on the customer’s experience of both contacts with the organization and personal outcomes (Hanan, 1989). Customers’ perceptions of service quality refer to the customers’ assessment of the overall excellence or superiority of the service (Zeithaml,
And he further express that how organization will act to satisfy their customers requirements and their needs and wants as well as how well the service will be delivered to customers to couple with customers expectation level of service. Moreover Johnston expressed that service quality is the thoughtfulness of various related elements. Those are customer satisfaction, quality of the service that organization is delivered and the customer’s feelings about the organization 's service ( Johnston & Clark, 2005 ). Cronin define the service quality as the final results of the evaluation done by the customer about the service they received from the organization. This evaluation based on the difference between their perceptions of service received and customer’s previous experience on service delivery.